In a new note, JP Morgan strategists say “there still does not appear to be any meaningful resistance mounting” to the high-yield market’s momentum, and that the average high-yield bond spread over Treasuries (a topic addressed at length in the Current Yield column of this week’s Barron’s magazine) still adequately compensates investors:

We continue to believe… factors can support pricing in high-yield ($107.25), but stable or higher equity markets and limited upward pressure on Treasury yields is becoming more crucial at these levels. At least at this point it is important to remember that while Treasury yields have trended higher over the past month in response to improving conditions (10-year +30bp), they remain very low in historical context, and high-yield bond and loan spreads still sit above 500bp, more than enough to compensate investors for the risk Treasury yields continue to trend higher.

At least the market appears a little less exuberant Monday, as gauged by the two biggest junk-bond ETFs. The SPDR Barclays Capital High Yield Bond ETF (JNK) is down 1 cent Monday to $41.35 while the iShares iBoxx $ High Yield Corporate Bond Fund (HYG) is down 14 cents to $94.71.